1. Prepare a COGM, COGS and Income statement for Fuller Factories, incorporating the full financial period including records for the last day of the financial period:

The management of Fuller Factories Pty. Ltd. receive an Interim financial report on the 29th June, 2018. The report covered all activities for the financial year from the 1st July, 2017. Inventories of work in process and finished goods were $74,500 and $146,000 respectively as at the 1st July, 2017. All Jobs on hand had been completed on the 29th June, 2018 except for one large job; No. 276. The job cost sheet for this job indicated to date direct labour of $12,000 and direct material of $10,000 had been used.

Records for the last day of the financial year showed that direct labour costs of $5,000, direct material costs of $3,000 and factory overhead costs of $2,000 were incurred on that day. Job No. 276 was still incomplete.

Up to the close of business on the 29th June, 2018, the work in process account had been charged with $500,000 of direct material. Factory overhead is applied at 150% of direct labour costs. Factory overhead of $850,000 had been incurred up to the close of business on 29th June, 2018.

Sales for the period were $3,300,000, representing a mark up of 50% on factory cost (full production cost). There were no sales recorded on the last day of the period. Closing balance of finished goods was $34,000.